Gold extends losses on weak global cues, muted demand

Gold dropped by Rs 250 to Rs 31,300 per ten gram at the bullion market Friday, extending its slide for the third straight day largely in tandem with a weakening global trend amid tepid demand from local jewellers. Silver followed suit and dropped by Rs 450 to Rs 38,000 per kg due to poor offtake by industrial units and coin makers. Traders said gold prices took a hit owing to a weak global trend as the dollar firmed up after upbeat US economic data supported the Federal Reserve's resolve for steady interest rate hikes over the next year. Globally, gold fell 0.98 per cent to USD 1,182.40 an ounce and silver by 0.42 per cent to USD 14.24 an ounce in New York Thursday.

Besides, fading demand from local jewellers and retailers at domestic spot market, too, fuelled the downtrend, they said. In the national capital, gold of 99.9 per cent and 99.5 per cent purity plunged by Rs 250 each to Rs 31,300 and Rs 31,150 per ten gram, respectively. It had lost Rs 175 in the previous two days. Sovereign gold, however, remained unaltered at Rs 24,500 per piece of eight gram in limited deals. In sync with gold, silver ready drifted down by Rs 450 to Rs 38,000 per kg and weekly-based delivery by Rs 110 to Rs 37,860 per kg. Silver coins, however, maintained a steady trend at Rs 72,000 for buying and Rs 73,000 for selling of 100 pieces.